Essay
In the most recent month, Faulkner Corporation's total contribution margin was $208,000 and its operating profit $39,400.
Required:
a. Compute the degree of operating leverage to two decimal places.
b. Using the degree of operating leverage, estimate the percentage change in operating profit that should result from a 1% increase in sales.
Correct Answer:
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a.Degree of operating leverage = Contrib...View Answer
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Correct Answer:
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